Bitcoin holds ground as gold, silver slide on ETF outflows and liquidity strains: JPMorgan

The bank said institutional unwinding and weakening liquidity have hit precious metals, while bitcoin shows steadier flows and improving momentum amid geopolitical stress.

Make us preferred on Google

What to know:

• JPMorgan said gold and silver prices have dropped sharply as ETF outflows and profit-taking accelerate.
• Bitcoin has seen net inflows and stabilizing momentum, outperforming metals on a relative basis.
• Liquidity in gold has deteriorated below bitcoin, while silver market depth has weakened further, the bank said.

Bitcoin BTC$68,966.85 is proving more resilient than traditional safe-haven assets as gold and silver come under pressure from outflows, positioning unwinds and deteriorating liquidity, according to Wall Street investment bank JPMorgan.

"The deterioration in liquidity conditions in gold has seen its market breadth
decline below that of bitcoin currently," analysts led by Nikolaos Panigirtzoglou, wrote in the Wednesday report.

Bitcoin has shown relative resilience in recent weeks following the outbreak of war in Iran, even after a steep correction from its October all-time highs.

The cryptocurrency initially dropped sharply alongside broader risk assets, briefly falling into the low-$60,000 range and triggering large liquidations as investors rushed to de-risk amid geopolitical uncertainty.

But the sell-off proved short-lived. Prices have since stabilized in the high-$60,000 to low-$70,000 range, even as tensions persist and oil prices surge above $100 a barrel.

The price action suggests bitcoin is behaving less like a pure safe haven in the immediate shock phase and more like a high-beta macro asset, selling off initially, then finding support as flows return and longer-term holders step in once panic subsides.

Gold has fallen roughly 15% month to date, reversing a crowded rally that pushed prices to record highs near $5,500 in January. Silver, which peaked near $120, has followed a similar path lower. JPMorgan analysts attributed the sell-off to rising interest rates, a stronger U.S. dollar and broad profit-taking by both retail and institutional investors.

Flows data reinforce the shift. Gold ETFs saw nearly $11 billion in outflows in the first three weeks of March, while silver ETF inflows built since last summer have been unwound, the report said. In contrast, bitcoin funds have continued to attract net inflows over the same period.

Positioning data tells a similar story. JPMorgan’s proxy for institutional activity, based on Chicago Mercantile Exchange (CME) futures open interest, shows a sharp buildup in gold and silver exposure through late 2025 into early 2026, followed by a steep decline since January as investors cut positions. Bitcoin futures positioning, by comparison, has remained relatively stable in recent weeks.

Momentum signals also diverge. The bank noted that trend-following investors, such as Commodity Trading Advisors (CTAs), have aggressively reduced exposure to gold and silver, with indicators swinging from overbought to below-neutral levels. That positioning shift has likely amplified recent price declines. Bitcoin momentum, meanwhile, is recovering from oversold conditions toward neutral, suggesting selling pressure may be easing.

Liquidity conditions further highlight the divergence. Gold’s market breadth has deteriorated to the point where it now trails bitcoin, a reversal of the typical relationship. Silver’s liquidity has weakened further, with thinner market depth exacerbating recent price moves, the report added.

The world's largest cryptocurrency was trading around $69,000 at the time of publication. Gold was trading around $4,450/oz, and silver $69/oz.

Read more: Wall Street broker Bernstein calls bitcoin bottom, keeps $150,000 year-end target

More For You

The exchange's chief of product development, Jon Herrick, said blockchain technology will be layered into current systems rather than replace them.

What to know:

• The New York Stock Exchange is pursuing a strategy of integrating blockchain technology into its existing market infrastructure rather than replacing traditional systems outright.
• NYSE chief product officer Jon Herrick said the exchange is focused on interoperability and tokenization uses such as real-time or near real-time settlement and extended trading...

The NYSE wants to bring blockchain to Wall Street without breaking the existing system

27 minutes ago

Crypto for Advisors: The evolution of stablecoins

1 hour ago

The privacy paradox: regulating zero-knowledge finance in the EU and beyond

1 hour ago

Stablecoin rewards restrictions can slow but not stop Circle's USDC, says Citigroup

2 hours ago

CoinDesk 20 performance update: index falls 3.2% as all constituents trade lower

2 hours ago

MARA Holdings higher by 10% after selling $1.1 billion in bitcoin to fund debt buyback

3 hours ago

Coinbase, Fannie Mae bring crypto-backed mortgages to homebuyers

4 hours ago

Bitcoin has traded in a tight range for nearly 50 days – but this is not a "bear flag"

6 hours ago

Market structure bill compromise draws wide-ranging reaction from fractured crypto crowd

17 hours ago

Crypto slides as oil spike, macro jitters trigger derivatives unwind

5 hours ago

U.S. midterms pack major digital assets punch as Stand With Crypto preps strategy

4 hours ago

Some bitcoin indicators are still going the wrong way, challenging the bullish $70,000 holdout story

10 hours ago

In this article

BTCBTC$70,046.42◢1.20%